Americas has a much higher client advisor to client ratio than the other regions.
But instead, that the typical advisor client relationship transition from a state of dependence to one of interdependence where people are more involved in the investment management selection and monitoring process.
Throw in the quarterly or annual meeting, when a client meets with their advisor and spends 30 minutes to an hour discussing investment strategy.
Today, the financial planning industry has created a model where the advisor and client sit on the same side of the table with fee-based asset management rather than commissions for trades.
Once a client has referred themselves to CAP, a debt advisor from the local centre visits the client in their home to draw up a debt repayment plan.
Did you know a stockbroker can use client testimonials but a fiduciary advisor may not?
But those benefits accrue to the client, not the the advisor.
However, like a physician, the advisor needs to assure the client that together they do know better, and can do better, than any TV star with rock music playing as a backdrop for market movements!
That limited power of attorney allows the advisor to execute trades on behalf of the client.
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While not charged directly, the cost of advisor acquisition ultimately is paid for by inflated client fees and commissions.
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And, when a registered investment advisor charges performance-based compensation, by law, the advisor must make a specific disclosure to the client.
Typically, these products are sold by an advisor within a bank who may give the client the misunderstanding that the FDIC is insuring the investment when, in fact, they are not.
The advisor is not deriving any benefit through the use of client commissions.
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As advisor to its own proprietary mutual funds and manager of individual client accounts, AFAM may purchase, sell or hold positions in the securities that appear in this presentation.
If you, or your advisor, or the portfolio managers your advisors select for their client, can keep your eye on that ball, it will inform your decision about the stock market and your portfolio at large.
The advisor simply manages the account under a limited power of attorney granted by the client.
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You the client must be comfortable with the advice you are getting, must have a personal relationship with the advisor, meet with the advisor regularly and provide the advisor with your current financial information.
When an advisor leaves a big firm, the clients are immediately reassigned to other employees at the firm and client assets remain in place.
Knowing the situation makes me a better advisor regarding what taxes a person is subject to, and which tax reducing transactions and changes a client may want to consider.
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If you have a first meeting with an advisor, from my perspective, that should have very little to do with anything but you as the client, who you are, what you care about, what makes your heart sing, what your objectives are.
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